Great Elm Capital Corp. Announces Third Quarter 2024 Financial Results

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Great Elm Capital Corp.
Great Elm Capital Corp.

Company to Host Conference Call and Webcast at 8:30 AM ET Today

PALM BEACH GARDENS, Fla., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the third quarter ended September 30, 2024.

Third Quarter and Other Recent Highlights:

  • Net investment income (“NII”) for the quarter ended September 30, 2024 was $4.1 million, or $0.39 per share, as compared to $3.1 million, or $0.32 per share, for the quarter ended June 30, 2024.

  • Net assets were $125.8 million, or $12.04 per share, on September 30, 2024, as compared to $126.0 million, or $12.06 per share, on June 30, 2024.

  • In September 2024, issued $36.0 million of 8.125% unsecured notes due 2029 (the “GECCH Notes”) and an additional $5.4 million in October with the full exercise of the underwriters’ overallotment option.

  • Redeemed all outstanding 6.75% unsecured notes due in January 2025 (the “GECCM Notes”) on October 12, 2024 with net proceeds from the GECCH notes and cash on hand.

  • GECC’s asset coverage ratio was 166.2% as of September 30, 2024, as compared to 171.0% as of June 30, 2024 and 168.4% as of September 30, 2023.

    • Pro forma for the GECCH issuances and GECCM redemption, the asset coverage ratio would have been 164.4%.

  • The Board of Directors approved a quarterly dividend of $0.35 per share for the fourth quarter of 2024, equating to a 14.0% annualized yield on the Company’s closing market price on October 30, 2024 of $10.03.

Management Commentary 
“We had a strong third quarter, reporting NII that exceeded our quarterly distribution and generating record total investment income of $11.7 million,” said Matt Kaplan, GECC’s Chief Executive Officer. “Along with managing our stable portfolio, we successfully refinanced our GECCM Notes, extending our debt maturity profile. We look forward to closing a very successful 2024 on firm footing, after completing multiple substantial capital raises at NAV and launching our CLO joint venture. Our innovative JV approach utilizing the CLO structure has increased our exposure to first lien bank loans with long term, non-recourse financing, and is already delivering strong cash income. Looking ahead, we believe we remain well-positioned to maintain our dividend coverage and deliver attractive risk-adjusted returns to our shareholders.”

Financial Highlights – Per Share Data

 

Q3/2023

Q4/2023

Q1/2024

Q2/2024

Q3/2024

Earnings Per Share (“EPS”)

$1.02

$0.55

($0.05)

($0.14)

$0.33

Net Investment Income (“NII”) Per Share

$0.40

$0.43

$0.37

$0.32

$0.39

Pre-Incentive Net Investment Income Per Share

$0.50

$0.54

$0.46

$0.40

$0.49

Net Realized and Unrealized Gains / (Losses) Per Share

$0.62

$0.12

($0.42)

($0.46)

($0.06)

Net Asset Value Per Share at Period End

$12.88

$12.99

$12.57

$12.06

$12.04

Distributions Paid / Declared Per Share

$0.35

$0.45

$0.35

$0.35

$0.35

 

Portfolio and Investment Activity

As of September 30, 2024, GECC held total investments of $333.3 million at fair value, as follows: